Geregu Power Defaults on N409.09 Billion Bond Payments

Geregu Power Plc's default on its N409.09 billion bond obligations became public in late July 2026, following the company's failure to make its eighth semi-annual coupon payment and the fourth principal installment. The FMDQ Securities Exchange identified the bond as being in "credit default" in early August.

The bond, issued in July 2022 under former majority owner Femi Otedola and former CEO Akin Akinfemiwa, was intended to fund the acquisition of Geregu II but collapsed due to unmet Bureau of Public Enterprises requirements. Approximately N31 billion of the bond proceeds were supposed to be secured in an escrow account for payments.

However, upon the takeover by new majority owner MA’AM Energy Limited, linked to Abdulaziz Yari, it was discovered that these funds had been withdrawn by the previous management. Consequently, the company missed its July 28, 2026, payment deadline.

To mitigate investor panic, Senator Abdulaziz Yari, the new Board Chairman, personally paid N6 billion to bondholders, clarifying that this was not an admission of liability.